Tax & Development

Danida’s Tax and Development Programme covers the period 2015 to 2018.

About the programme

In December 2014, Denmark signed an Agreement with the Government of Ghana on the Tax and Development programme. The Programme is designed to support the exit phase for Denmark’s participation in general budget support and as a complementary measure to support economic governance and the sustainability of GoG's public finances. The Tax & Development fits well into Denmark's overall strategy for the evolution of its relationship with Ghana.

The programme contributes to the Denmark-Ghana Partnership Policy which reflects the evolving relationship between Ghana and Denmark as Ghana becomes increasingly self-reliant and the scope for commercial relations increases. The Denmark-Ghana Partnership Policy has the aim of strengthening the political alliance and benefitting growth and employment in both countries. The overall objective of the programme is to improve economic governance by increasing revenue mobilisation, strengthen revenue administration and improve accountability of the Government to its citizens.

The Tax and Development Programme covers three engagements, one on tax and development with the Ghana Revenue Authority (GRA), and the other two, dealing with domestic accountability, provide support to two Civil Society Organisations (CSOs) – IMANI - Center for Policy and Education; and the Ghana Integrity Initiative (GII).

This programme is Denmark’s first engagement in the revenue administration arena in Ghana and forms part of the Danish Government’s Tax Plan, which aims to assist its partner countries build up stronger tax systems, increase tax income and at the same time fight tax fraud, addressing tax loopholes and illicit financial flows. In that regard, Denmark’s engagement in this programme will hopefully assist Ghana in mobilising revenue, which can fund public services and reform and for the country to eventually become independent of development assistance.

The main part of the Danish support to GRA will directly fund the implementation reform agenda as detailed out in the GRA’s Modernisation Plan. The Programme will have a strong focus on results in line with our ambition to create a “results culture”.
Denmark will further through this Programme strengthen domestic accountability to ensure judicious use of public funds as well as increased budget literacy among stake holders by providing core funding to IMANI and GII.